The Darvas Method

[DonCarlson]

Gheeze Vibr8gKiwi, Darvas is indeed opposite of AIM. Take a look at Post #58 and #29, I was responding to MM about the 5% shadow that Darvas extended below the "Box"...In #58 I was illustrating how AIM could be used to estabish the boxes with the 5% shadow AND use Darvas trading strategy, not AIM trading (scale trading). i.e. select a stock and as long as new boxes are being defined upward...let the profits run, when the price breaks below the shadow area, sell.....not Scale Trading, but Darvas Trading.

I had to smile when I read your link on Scale Trading as the World's Worst Trading Strategy and discribes in great detail how bad it can be when a stock is bought at $50 and goes to $1 http://www.investopedia.com/university/fiveminute/fiveminute6.asp

Then the the author starts the very next Chapter out as "The Reverse Scale Strategy" and states in Bold letters "I want to emphasize that perhaps the best strategy of all, for most people, is to simply apply the stock picking criteria in the past chapters, then buy and hold their selected stocks without ever selling them."

Assuming the author had used the same stock picking strategies for Scale Trading and Reverse Scale Trading .... I wonder how he figures he's better off with Buy and Holding as the stock tumbles from $50 to $1?